June 29, 2004 - Founder and CTO Gregg Favalora Named President and CEO

BURLINGTON, Mass. - June 29, 2004 - Actuality Systems, Inc., the world leader in Spatial 3D visualization technology, announced today that James Lally, Partner Emeritus at Kleiner Perkins Caufield & Byers, has joined the company's Board of Directors. The company also announced that Gregg Favalora, Actuality Systems Founder and CTO, has been named to the additional position of President and CEO.

Lally has built a distinguished career as an engineer at TRW, HP, and Intel, where he founded three major microcomputer systems divisions, serving as general manager. For more than a decade, he was a general partner at Kleiner Perkins Caufield & Byers, where he is now Partner Emeritus. He holds a BS in Electrical Engineering from Villanova University and is or has been on the boards of Ascend Communications, Symantec, Wyse Technology, and NeoMagic Corporation.

"Actuality Systems has achieved a number of technological breakthroughs that target opportunities for Spatial 3D, particularly in the fields of geophysical exploration, medical visualization, and security. This is an exciting new technology with great promise for the future," Lally said.

CEO Favalora founded the company in 1997 and since then has served as Chief Technology Officer. An electrical engineering graduate of Yale, Favalora gained his Master's in engineering sciences at Harvard. He is nationally recognized for his pioneering work in volumetric 3D, and has been named one of the "top technologists under 35" by the MIT Technology Review.

"We are extremely pleased that Actuality Systems was able to win Jim Lally's attention and have him join our Board of Directors," Favalora said. "Jim's vision, world-class track record with high-tech firms, and extraordinary experience with imaging and display companies will be a tremendous help to us as the company moves toward its next stage of growth."

Actuality Systems won a $1.7 million grant last fall from the National Institute of Standards and Technology. Work is currently underway to create full-motion 3D holovideo for the broad consumer market. The company also has 18 installations of its Perspecta TM Spatial 3D Systems with development customers worldwide, including NASA, Japan's Jikei University, the National Institutes of Health, Purdue University, and Italy's ENEA.

About Actuality Systems

Actuality Systems, Inc. produces the world's first Spatial 3D display systems, which have been proven to provide faster and more accurate outcomes in critical defense, medical, and security operations. The Perspecta TM Spatial 3D System displays full-color and -motion images that occupy a volume in space, giving users a 360º view and simultaneous multi-view collaboration - without goggles. Built on patented technologies, Perspecta Spatial 3D is plug-and-play, displaying all rendering and movement from widely used open-standard 3D applications. Perspecta Spatial 3D has won Product of the Year awards from respected trade and industry publications. Actuality Systems is backed by world-class venture firms and individuals, with offices near Boston. For more information, call 781/229-7812 ext. 190 or visit www.actuality-systems.com

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